TELUS secures new 3800 MHz spectrum licences

Executive Summary

• TELUS announced the purchase of new 3800 MHz spectrum licences in British Columbia and Alberta for $317.6 million through ISED’s Residual Auction.
• The acquisition adds an average of 104 MHz of prime mid‑band 5G spectrum nationally, purchased at approximately $0.82 per MHz‑pop, enhancing TELUS’s 5G network capacity and coverage.
• Management indicated the spend is consistent with its capital plan and will not affect its deleveraging targets (net debt/EBITDA ≈ 3.4× in 2025, aiming for ≤ 3.3× by end‑2026).

Key Details

• Transaction amount: $317.6 million paid to the Canadian government for 3800 MHz licences covering B.C. and Alberta.
• Spectrum obtained: Additional mid‑band (3800 MHz) spectrum; total national holding now averages 104 MHz across the 3500 MHz and 3800 MHz bands.
• Purchase price metric: Approx. $0.82 per MHz‑pop, described as an “attractive price” relative to prior auctions.
• Strategic purpose: Enables enhanced 5G broadband, supports mission‑critical applications (public safety, industry automation, private wireless networks) and high‑availability AI services.
• Capital plan alignment: Investment is classified as a strategic growth expense; no impact on the company’s deleveraging objectives.
• Financial outlook remarks: Net debt to adjusted EBITDA was 3.4× in 2025; target ≤ 3.3× by year‑end 2026 and ≤ 3.0× by end‑2027.

Notable Quotes

“In alignment with our commitment to always be building Canada, the acquisition and deployment of this spectrum will further enhance the advancement of our 5G growth strategy… Importantly, there will be no impact to our deleveraging plan…” – Darren Entwistle, President & CEO, TELOS.